Cruise market profile clia 2011

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Cruise market profile clia 2011

  1. 1. Cruise Lines International Association 2011 Cruise Market Profile StudyJune 2011TNS 212 221800
  2. 2. Prepared for:Table of Contents CRUISE LINES INTERNATIONAL ASSOCIATIONIntroduction and Purposes …………………………………………………………….…… 4 Prepared by: TNSMethodology ….…………………………………………………………………………..… 5 212221800Executive Summary and Implications ……………………………………………………. 8Future Travel Overview……………………….…………………..……………………..… 14Market Projections……………………….…………………..…………………………….. 22Results of Research...….………………………………………………………………..… 28Demographics…………..…………………………………….……………………………. 30Cruise Characteristics and Satisfaction………………………………........………….… 37Research, Decision, Planning, and Booking…….……………………….……………... 45Travel Agent Usage ………………………………………………..……………....… 55Cruise Interest and Potential Plans ……………………………………..…..............… 66Cruise History and Last Trip Characteristics ………………………………………..…. 79Awareness and Cruise Influencers ……………………………………………………… 95Appendix (Building the Projections) …………………………………………………..… 109 2
  3. 3. Introduction and Purposes of the Research
  4. 4. Introduction and Purposes of the ResearchTNS is pleased to present the results of this cruise market profile study to Cruise Lines International Association (CLIA).Understanding the current cruise market as it relates to the overall population and helping cruise lines target previouscustomers and potential new ones are the study’s main purposes. To this end, the report outlines the behaviors of cruisersand the specific factors that influence the types of cruises that people take. Specifically this study: Calculates the percentage of the population that has ever taken a cruise or vacation in the past three years, as well as measuring the percent of the population that is interested in taking a cruise, package, or resort vacation in the next three years Identifies the specific cruise lines experienced by cruisers and analyzes the types of cruises in which people indicate an interest in the next three years, as well as the location planned for their next cruise trip Gauges monetary spending patterns while on a cruise or other vacation OR a cruise vacation Surveys cruise patterns such as: number in usual travel party, their relationship to the respondent, length of trips, and the reasons for them Classifies travelers as to how they gather information and conduct research for vacations, the amount of time in advance they begin their research process, and the level of influence of each source upon their final choice Measures satisfaction level of travel agent users with their travel agents and provides consumer perceptions of travel agents Collects demographic informationComparisons are made to prior studies conducted 2004, 2006, and 2008, with these noted survey variations: The definition of cruising expands to river cruises in either the US or Europe (2008) Data for 2008 and 2011 were collected during periods of economic stress (economy and fuel costs).NOTE: Cruisers in 2008 and 2011 include US/European River cruisers and boost the 2011 cruise population byabout four percent – there are 29 cruisers in the sample who cruised only rivers (no ocean) out of a total of 745cruisers.©2011 TNS - Confidential 4
  5. 5. Methodology
  6. 6. MethodologySince 2004, the research has been conducted online via TNS’ website and sample was drawn from TNS 6th dimension US Panel, anationally representative panel (1,000,000+ households) of the US household population. Conducted from March 2 through March 14,2011 (plus a refield April 15 through April 20), a total of 1,354 US residents were interviewed, a still robust, but smaller sample thanthree years ago (2,426).Quotas ensured representative participation of males and females. In addition, all respondents are at least 25 years old, have aminimum household income of $40,000 and are weighted by age and income to account for response bias. Respondents fall into oneof three categories: Cruiser (one who has ever taken a cruise) Vacationer (took a vacation away from home for at least 3 nights in the past 3 years and never cruised) Non-cruiser/Non-vacationer (never cruised and have not vacationed in the past 3 years)Respondents completed one of three questionnaire versions based on the above cruise or vacation habits: Those who have cruised responded to questions about their most recent voyage Vacationers provided information about their most recent trip (not a cruise, within three years) Others, with no cruise or recent land-based trip, completed demographic questions.In the report, Cruisers fall into four segments: Destination, Luxury, Premium, and Contemporary. Since they may have cruised shipsin more than one segment, it is important to note that these groups are not mutually exclusive. 2006 2008 2008 (WTD) 2011 2011 (WTD) Total (NET) 2,482 2,426 2,426 1,354 1,354 Random 2,275 NA NA NA NA Cruiser (NET) 1,150 1,130 1,081 802 745 Cruiser exc. River NA 1,104 1,058 692 645 Destination 53 75 69 40 44 Luxury 69 67 62 52 40 Premium 345 364 336 316 245 Contemporary 854 821 793 621 590 A total of 1,354 completes at the 95% confidence level, represents results at 3%.©2011 TNS - Confidential 6
  7. 7. Executive Summary / Implications 7
  8. 8. Executive Summary / Implications This study profiles the characteristics of cruisers and compares them to other US adults; it also reviews the kinds of cruises they took in the past, cruises that they may take in the future, their spending patterns, what factors influence their cruise selection, and how to expand the cruise market. Interviews were conducted online with 1,354 past cruisers and non-cruisers. Where appropriate, trends are tracked by comparing results to previous waves of the study conducted in 2004, 2006, and 2008. The methodology mirrors that of these prior waves, using a household income requirement of $40,000 and an online data collection process. Profile As designed, the study represents a core target market and cruisers within that target market tend to be more upscale: Median household incomes ($82,000 market; $97,000 cruisers; $75,000 non-cruiser/vacationers) High proportion of college graduates (71%; 76%; 67%). Other characteristics include: Median age (47 market; 48 cruisers; 46 non-cruiser/vacationers) Many retirees (16%; 20%; 14%) An even split by gender as imposed by quotas Most are married (79%; 79%; 82%)©2011 TNS - Confidential 8
  9. 9. Executive Summary / Implications Vacation Types Although less than in 2008, visiting friends and relatives (67% from 78%) remains, by far, the leading type of vacation taken in the past three years. Only two other types attract at least a quarter of all travelers: land-based non-packages (38%) and ocean/river cruises (27%). Of the ten types of vacations measured, only cruising posts a gain from three years ago. Within the target market (25+ and $40,000+ household income), cruising (45%), visiting friends/ relatives (46%), and resort trips arranged by the traveler (45%) have the highest proportion of extremely satisfied customers. All inclusive resorts (43%) and land-based escort tour (42%) rank highly as well. All others satisfy (extremely) 40% or fewer of their guests/visitors. Past cruisers view various vacation types similarly, giving nearly equally high marks to all-inclusive resorts (47%), cruising (45%), visiting friends/relatives (45%), and self-arranged resort trips (45%). Spending Spending by cruisers and vacationers for an average one-week vacation rises slowly, but steadily, now averaging $1,500 per person – from $1,470 in 2008, $1,410 in 2006, and $1,303 in 2004. By vacationer type, cruisers spend considerably more (by almost 25%) on vacations than non-cruisers ($1,700 vs. $1,300). Of cruisers, passengers on Destination/Specialty/Niche ($2,900) and Luxury lines ($2,500) spend the most. Travel Party Vacationers (cruisers or not) usually travel in pairs. Both types usually travel with spouses (80% cruisers; 78% non-cruisers) and virtually no one travels alone (2% cruisers; 3% vacationers). Cruisers continue to be less likely travel with children than non-cruisers (31% vs. 38%), with the proportion declining in both groups from three years ago (34% vs. 41%).©2011 TNS - Confidential 9
  10. 10. Executive Summary / Implications (continued)Vacation Decision MakersMore than half (60%) of travelers research vacations themselves, whether cruisers or not. However,when it is time to make the actual decision, travelers tend to involve their spouse (45% jointly; 39%self). When the decision is made solo, females slightly more often claim to make it (41% vs. 38%males).Vacation InfluencesAmong information sources, the destination website element (39%) remains the leading influence –ahead of word of mouth (35%) and always wanted to go there (31%) – and is the only one of the topfour that marketers can directly control. Besides those just mentioned, spouse/travel companion (36%)is the fourth element.As noted in the past, the destination (7.9 out of a possible 10 points) leads as the most influentialreason that travelers choose a vacation or cruise, with spouse/travel companion desire remaining insecond place (7.2). Overall value for the vacation dollar (7.0, a new measure in 2011) pushes price(6.8) to fourth place.Planning and BookingTravelers often view cruises as special trips, and as such, they take substantial time to plan them.Slipping slightly from 2008, travelers still average a longer time frame than earlier years to plan avacation (4.6 months vs. 5.2 months in 2008, 4.3 in 2006, and 3.8 in 2004). Cruisers spend almost anextra month more than non-cruisers in planning their trips (4.9 vs. 4.1).Cruisers tend to book (3.3 months before the trip) about 1½ months after planning begins (4.9 months).©2011 TNS - Confidential 10
  11. 11. Executive Summary / Implications (continued)Travel Agent RelationshipsA majority of cruisers still book at least some of their cruises with travel agents, although thatproportion declines (68% from 74% in 2008). Some portion of the decline is attributed to consumerconfusion regarding online resources used and travel agents. With continued travel agency adoptionof online resources, some customers attribute an online planning/booking when in fact that onlineresource is sourced to a travel agency. Other travel agent findings include: As expected, more cruisers than land-based vacationers (68% vs. 45%) use agents (all services). By type, more destination (91%), luxury (89%), and premium line (80%) cruisers consult agents than contemporary line passengers (68%) Meanwhile, satisfaction remains stable; cruisers seem generally satisfied (59% extremely/very satisfied, matching 2008) with their agents Over one third of cruisers currently believe that professional designations make a difference (37%), but continue to place greater faith in the designation than non-cruisers (31%); further, the majority (66%) still state that those designations would encourage them to use an agent (vs. 57% of non-cruisers) Travel agents remain the distribution channel offering the best service, similar to the past (40% vs. 42% in 2008 and 40% in 2006) However, even cruisers believe that websites and online travel retailers provide the best prices on cruises – at almost three times the rate of travel agents (48% vs. 17%); the gap increases for non-cruiser vacationers (62% vs. 13%).©2011 TNS - Confidential 11
  12. 12. Executive Summary / Implications (continued)Future InterestInterest in cruising in the next three years mirrors the level of three years ago (71% vs. 70% in 2008) asthe other types of travel post similar to small declines in interest. Further, while travel plans balance forcruisers (the number expecting to take fewer trips offsets the number expecting to take fewer trips in thenext 12 months), the non-cruiser vacationer outlook declines (more of them expect to take fewer vacationsthan more vacations). Meanwhile, those interested in cruising remains at the high level posted in recentprior waves (65% vs. 64% in 2008 and 2006, 60% in 2004). Other likely “predictions” include: Expectations to definitely cruise in the next three years remains strong (19% from 19%) while probably cruise climbs slightly (21% from 18%) Three-quarters (76%) of potential cruisers expect that the trip will last at least six days, with past cruisers more likely to seek longer cruises than non-cruisers (82% vs. 57%) Of those planning to cruise in the next three years, most (82% vs. 84% in 2008) indicate that they will cruise within the next two years Large (62%), medium (41%), and very large (39%) ships appeal to more travelers overall than small/ intimate vessels and, regarding atmosphere, they prefer casual (63%) and casual elegance (64%) to other types Overall, travelers most frequently name the Caribbean (45% overall) as their cruise destination of choice, except passengers of the Destination segment, who rank Alaska at the top.Both cruisers and other vacationers perceive cruising as more expensive than land-based trips. On theother hand, strong belief exists that cruising offers very high value for the cost, an image than can beexploited in marketing materials.©2011 TNS - Confidential 12
  13. 13. Future Travel Overview
  14. 14. Results of Research (continued) Vacation Types of Interest in the Next Three Years Every type of traveler selects land-based non-resort vacations as the most likely type that they will take in the next three years – except past cruisers, who give cruising a very slight edge (82% vs. 80%) Overall, cruising ranks second, gathering interest among almost three-quarters (71%) of the total market. Interest in Vacation Types in Next Three Years (Q3A) BASE: Total Rep Sample Rep Sample Rep Sample Non-Cruiser/ Non-Cruiser/ (2006) (2008) (2011) Vacationers Non-Vacationer Cruisers Any Cruise Vacation 65% 70% 71% 57% 55% 82% Resort Vacation as Part of a 61% 63% 62% 57% 58% 65% PackageResort Vacation – Make Your 71% 71% 66% 67% 42% 68% Own Arrangements Land Based Non-Resort 80% 80% 85% 62% Vacation Land Based Escorted Tour 33% 26% 21% 40% Q3a. What kinds of vacations would you be interested in taking in the next three years? ©2011 TNS - Confidential 14
  15. 15. Results of Research (continued) Future Travel Plans For the next twelve months, roughly the same number of people anticipate traveling more as less (16% vs. 17%), similar to 2008. Cruisers have more robust expectations (18%) than non-Cruisers/Vacationers (15%) to travel, especially Destination and Luxury cruisers.More Travel Expectations for Leisure Travel in the Next 12 Months (Q13A)About the Same BASE: Total RespondentsLess CRUISERS Rep Rep Rep Rep Non- Non-CruiserSample Sample Sample Sample Cruisers/ Non- Desti- Contem-(2004) (2006) (2008) (2011) Vacationers Vacationers Cruisers nation Luxury Premium porary“MORE” MINUS “LESS”+20% +9% -1% -1% -5% +14% +1% +45% +9% -1% +1% Q13a. Do you expect to travel more for leisure in the next 12 months than you did in the last 12 months, or do you expect to travel for leisure less or at about the same rate? ©2011 TNS - Confidential 15
  16. 16. Results of Research (continued)Passport OwnershipCruisers (83%) are much more likely to own a passport than non-cruiser/vacationers (51%) – especiallyDestination (97%) cruisers. Who Owns Passports (F1) BASE: Total CRUISERS Rep Rep Non- Sample Sample Cruisers/ Contem- (2008) (2011) Vacationers CRUISERS Destination Luxury Premium porary QF1 Do you own a valid US passport?©2011 TNS - Confidential 16
  17. 17. Results of Research (continued)Overall Awareness of CruisingAs noted throughout this report, marketing and promotional efforts appear effective. Although slightly fewerthan three years ago, still, four times as many people cite increasing awareness of cruising (32%) as decreasingawareness (8%).Note: Those who have cruised in the past already exhibit interest in cruising and may report that their awareness level stays thesame (currently at 56%), although that awareness may be quite high. Overall Awareness of Cruise Vacation in the Past Year or Two (Q8A) BASE: Total CRUISERS Rep Rep Non- Sample Sample Cruisers/ Desti- Contem- (2008) (2011) Vacationers CRUISERS nation Luxury Premium porary Increased Greatly Increased Somewhat Stayed the Same Decreased Mean 3.3 3.3 3.2 3.4 3.9 3.5 3.4 3.4 Q8a. In the past year or two, has your overall awareness of cruise vacations… ©2011 TNS - Confidential 17
  18. 18. Results of Research (continued) Interest in taking a Future Cruise Vacation Interest as well as awareness (prior slide) indicates effective marketing and promotional efforts: More than twice as many people have increasing interest in a future cruise (38%) as a decreasing interest (14%), including a large share of those with no past cruise history (34%) All past cruisers, especially Destination (71%) cruisers, claim increasing levels of interest. Level of Interest in Taking a Cruise Vacation in the Past Year or Two (Q8B) BASE: Total CRUISERS Rep Rep Rep Rep Non- Sample Sample Sample Sample Cruisers/ Desti- Contem- (2004) (2006) (2008) (2011) Vacationers Cruisers nation Luxury Premium porary Increased Greatly Increased Somewhat Stayed the Same DecreasedMean NA NA 3.3 3.3 3.2 3.4 3.9 3.5 3.5 3.4 Q8b In the past year or two, has your interest in taking a cruise vacation… ©2011 TNS - Confidential 18
  19. 19. Results of Research (continued)Travel Plan Reductions in Next YearAnother recent TNS study, conducted early in April 2011 to measure the impact of the recent hikes in gasoline prices,shows that nine out of 10(92%) travelers expect some effect – usually by taking fewer trips (40%) or staying closer tohome (30%)This survey shows that most people who have reduced their travel plans in the last year have done so for personaleconomic reasons: Increased living expenses (fuel, food, housing) (17%) Personal economic change or concern (17%) Increased fuel costs, although the survey was conducted before the most recent climb in gasoline prices (16%) Change in job responsibilities – ability to take vacation (11%) Change in personal employment status (10%) Travel hassles (9%).Comparisons between other groups: Only minor differences appear between cruisers and non-cruisers, except cruisers note less concern about fuel costs, living expenses, and personal economic change Luxury cruisers have more worries about stock market performance and fuss slightly more about travel hassles than others; Destination cruisers more often cite higher living expenses and the need to have a passport.©2011 TNS - Confidential 19
  20. 20. Results of Research (continued) Reduction in Leisure Travel Plans in the Past 12 Months (Q12L) % Changed (Reduced) BASE: Cruisers and Vacationers Job Respon- Relative Relative Add Increased Personal sibilities Increased Personal Stock Need to Safety/ Safety of Destination/Increased Living Economic (Available for Travel Employment Market Have US Security of Destination/ Hotel/ ShipFuel Costs Expenses Change Vacations) Hassles Status Performance Passport Air Travel Itinerary Safety Issues Q12l. Have you changed your leisure travel plans in the past 12 months for any of the following reasons (Reduced/Increased/No Effect for each reason)? ©2011 TNS - Confidential 20
  21. 21. Market Projections
  22. 22. Market ProjectionsSummaryPotential growth occurs in the cruise market by every measure: Population (+3%) Total past cruisers (+4% overall; +10% in core market) Total past recent (within 3 years) cruisers (+1% overall; +2% in core market) Future interest in cruising (+3%, Best Case; +1% Most Likely Case). Summary of Incidence 2008 2011 Market % of Market Market % of Market Total Population 296,623,000 100% 304,130,000 100% Total Cruisers (Ever) 59,094,000 20% 73,121,000 24% Total Cruisers Past 3 Years 30,077,000 10% 32,828,000 11% Core Target Market 128,638,000 100% 132,947,000 100% 25+, $40,000+ Population Total Cruisers (Ever) 57,373,000* 45% 73,121,000 55% Total Cruisers Past 3 Years 29,201,000* 23% 32,828,000 25% (Best Case) Future Interest (Definitely/Probably) 50,771,000 39% 55,391,000 42% (Most Likely) Future Interest (Definitely/Probably) 33,721,000 26% 36,116,000 27% *97% of all cruisers fell into core market based on in 2002 data; assumed 100% by 2011©2011 TNS - Confidential 22
  23. 23. Market Projections (continued)Current MarketTo understand the actual size of the market, current population and study results indicate the following: Of the current total US population (304,130,000), not quite half (44% or 132,947,000) are prime cruise candidates (age 25+; income $40,000+) Of the target population, 73,121,000 (55%) people have ever taken a cruise, and somewhat fewer than half of those (32,838,000) have done so in the past three years. Incidence of Cruising Market Size Proportion Number % of Core % of Total Total US Population Market 304,130,000 na 100% Core Market (25+; $40,000+) 132,947,000 100% 43.7% Any Cruisers (Ever) 73,121,000 55.0% 24.0% Recent (Past 3 Years) Any Cruisers 32,838,000 24.7% 10.8% Cruised Ocean (Exc. River ONLY) Ever 70,329,000 52.9% 23.1% Recent (Past 3 Years) Cruised Ocean 28,451,000 21.4% 9.4%©2011 TNS - Confidential 23
  24. 24. Market Projections (continued)Future MarketThe approach to projecting the number of travelers who will cruise within the next three years (a keyobjective) includes: 1. Best case scenario (all intending to definitely/probably cruise in the next three years) 2. Most likely case scenario (weighted intent to cruise in the next three years – definitely by 0.75; probably by 0.50). Market projections are provided for (note: for all households, the median household income = $49,800 in 2010): Core Target Market – Adults 25+ and household income $40,000+ (median = $82,000) Affluent Market – Adults 25+ and household income $60,000+ (median = $99,000) Very Affluent Market – Adults 25+ and household income $80,000+ (median = $121,000) Ultra Affluent Market – Adults 25+ and household income $150,000+ (median = $186,000) Projections are based on past cruisers’ and cruise intenders’ stated consumer intent and do not consider additional cruise line capacity. Note: Results shown in this report represent American passengers; 32 percent of cruise passengers reside in international locations. CLIA Passenger Carrying statistics for 2010 include: U.S Passengers (including Puerto Rico) = 10,090,135, or 68.1% Canadian Passengers = 691,121, or 4.7% Other International Sourced Passengers = 4,037,455, or 27.2% Total Passengers 2010 = 14,818, 711, or 100%©2011 TNS - Confidential 24
  25. 25. Market Projections (continued) Future Market Projections by Market Type Summary The most likely scenario is that 36,116,000 adults from this target market will cruise within the next three years, Core Market based on stated intent to cruise, up from 31,028,000 in 2006 and 33,721,000 in 2008. In addition to population (25+/$40,000) and cruising intent updates, these projections also include US/European River cruises.. The higher income requirement reduces the market to 28,970,000 (up from 26,193,000 in 2008 and Affluent Market 23,028,000 in 2006). The smaller gap between this segment and the core segment than three years ago (25+/$60,000+) suggests that a smaller proportion of future cruisers earn between $40,000 and $60,000.Very Affluent Market This more limited market further restricts the population from which to draw potential cruisers, reflecting a (25+/$80,000+) potential market of 21,995,000 (up from 19,978,000 in 2008 and 15,444,000 in 2006).Ultra Affluent Market This very high-end group represents 7,153,000 potential cruisers (up from 6,096,000 in 2008), but is subject to (25+/$150,000+) considerable volatility because of the small sample. Next 3 Year Cruising Projections Most Likely Scenario Market Size Proportion 2008 2011 % of Core 2011 % of Total Pop. 2011 Base: Total US Population Market 296,623,000 304,130,000 na 100% Base: Core Market (25+; $40,000+) 128,638,000 132,947,000 100% 44% Core Market (25+; $40,000+) 33,721,000 36,116,000 27% 12% Affluent Market (25+; $60,000+) 26,193,000 28,970,000 22% 10% Very Affluent Market (25+; $80,000+) 19,978,000 21,995,000 17% 7% Ultra Affluent Market (25+; $150,000+) 6,096,000 7,153,000 5% 2% ©2011 TNS - Confidential 25
  26. 26. Market Projections (continued)Future MarketProjections by IncomeAs expected, the higher income segments contribute a larger share of passengers: For example, those earning $150,000 or more represent 16% of the total core market, but 20% of the expected passengers come from that elite group Conversely, 25% earn between $40K to $60K, but they represent only 20% of passengers. Cruising Projections by IncomeMost Likely Scenario Market Size Core Market Size Future Core Population % of Core Future Cruisers % of Future Base: Core Market (25+; $40,000+) 132,947,000 100% 36,116,000 100% 25+; $40,000 - $59,999 32,599,000 25% 7,146,000 20% 25+; $60,000 – $79,999 31,322,000 24% 6,975,000 19% 25+; $80,000 – $149,999 48,210,000 36% 14,842,000 41% 25+; $150,000+ 20,816,000 16% 7,153,000 20%©2011 TNS - Confidential 26
  27. 27. Market Projections (continued) Market Projections for Cruising with Next 3 Years Among $40,000, $60,000, $80,000, and $150,000 Markets Best case Core Market 55,391,000 Most likely case 25+, $40k+ 36,116,000 44,078,000 Market 28,970,000 Affluent Target 25+, $60K+ Market 33,273,000 25+, $80K+ 21,996,000 Market 10,848,000 25+, $150K+ 7,153,000Note: these results represent American passengers; 32 percent of cruise passengers reside in international locations.Note: Percentages and whole numbers are rounded for reporting purposes.Note: Projections bases on respondent stated intent©2011 TNS - Confidential 27
  28. 28. Results of Research
  29. 29. DEMOGRAPHICS 29
  30. 30. Results of ResearchDemographic DescriptionUsing the TNS access panel as the sample source, this study was conducted among a random sample of adults over 25years of age with minimum annual household incomes of $40,000, characteristics met by nearly all cruisers. Amongthe total representative market, most characteristics fall near prior year levels except for a rise in formal education (71%have at least a four-year degree, up from 62% in 2008). Other segments: Cruisers Non-Cruiser Vacationers The most upscale group shows these traits (vs. rep Those who spend three or more nights away from home sample): for leisure trips include: • Slightly older (median of 48 vs. 47) • Relatively young (46) • Higher household incomes ($97,000 vs. $82,000) • Least likely retired (14%) • Higher education (76% college grad vs. 71%) • Median household incomes ($75,000) placing • More likely to be retired (20 vs.16%) between cruisers ($97,000) and non-cruisers/non- • Predominantly married (79%, same as rep sample). vacationers ($66,000). Non-cruisers/Non-vacationers Cruisers Excluding River-Cruisers-Only The least upscale group indicates: The group excludes the 29 people who have cruised, but cruised rivers only (no ocean cruises). This comparison, • Substantially lower household incomes ($66,000) included in 2008 and 2011, shows the relatively new • The least formal education (56%) addition of river cruises to the “cruiser” definition. • Somewhat younger (42) However, since they represent so few of total cruisers • Least likely retired (7%) of the groups. and do not alter the cruiser characteristics, they are not shown separately in the rest of the report.©2011 TNS - Confidential 30
  31. 31. Demographic Description & ProfileCruisers - Who They Are Cruising highly satisfies passengers – most (94%) heap praise on cruising and nearly half (45%) say they were extremely satisfied. Most others were very satisfied (35%); fewer were somewhat (14%), not very (4%) or not at all (2%) satisfied. Spouses most often accompany cruisers (77%); friends (19%) and children under 18 (18%) rank as a distant second/third The last cruise vacation typically lasted about a week (7.4 days) Costs averaged roughly $1,790 per person for their cruise, air, and all onboard expenses One cruiser in ten (10%) took his first cruise within the past five years When choosing vacations, cruise websites grow in influence (38% vs. 28% in 2008), but other sources remain near prior levels: destination websites (40%), word of mouth referrals (32%), and spouse/travel companion (34%) input.©2011 TNS - Confidential 31
  32. 32. Results of Research (continued) Demographics Summary Rep. Rep. Rep. Rep. Non- Non-Cruiser/ Sample Sample Sample Sample Cruiser CRUISERS Non- 2004 2006 2008 2011 Vacationers CRUISERS exc. River Vacationer Age 25 – 29 6% 7% 7% 8% 8% 7% 7% 6% 30 – 39 23 24 22 24 25 20 18 39 40 – 49 28 30 28 24 23 24 26 25 50 – 59 24 21 24 22 24 21 22 20 60 + 17 15 17 23 19 28 26 10 Average 48 47 48 48 47 50 50 43 Median 44 43 45 47 46 48 48 42 Income $20k to $39,000 - - - - - - - - $39k to $50k 10% 15% 14% 13% 14% 10% 9% 28% $50k to $60k 15 14 11 11 14 9 10 16 $60k to $75k 21 18 18 18 21 15 16 17 $75k to $100k 23 21 20 20 22 19 19 20 $100k to $200k 27 27 30 32 24 39 39 18 $200k to $300k 3 3 4 5 3 7 7 1 $300k+ 1 2 2 1 0 1 1 0 Average (in 1,000s) $90 $94 $98 $100 $91 $109 $109 $74 Median (in 1,000s) $71 $75 $79 $82 $75 $97 $97 $66 Gender (QA) Male 49% 46% 50% 51% 48% 52% 51% 55% Marital Status (Q16h) Married 82% 80% 84% 79% 82% 79% 78% 69% Employment Status Full-time 63% 56% 63% 64% 65% 63% 63% 67% Retired 13 13 14 16 14 20 19 7 Educational Attainment College Grad (inc Post-Grad) 58% 52% 62% 71% 67% 76% 75% 56% Race White 93% 90% 89% 89% 89% 90% 91% 78% Black 3 5 5 3 3 3 3 7 Other 4 5 5 8 8 7 6 15©2011 TNS - Confidential 32
  33. 33. Results of Research (continued) Non-Cruiser/Cruiser Demographics Summary by Wave1Comparison of Cruisers Over Non-Cruiser Cruiser 2002 2004 2006 2008 2011 2002 2004 2006 2008 2011Time Age 25 – 29 3% 7% 9% 8% 8% 2% 6% 6% 6% 7% 30 – 39 19 27 25 25 25 12 20 24 21 20 40 – 49 21 31 33 28 23 18 23 26 27 24Age: Since 2004, the average 50 – 59 20 22 20 23 24 26 25 22 24 21cruiser’s age hovers near 50 – 60 – 74 24 12 12 14 18 28 23 18 19 24 75+ 13 1 1 2 1 14 3 4 4 4somewhat older than the non- Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%cruiser vacationer (45 – 47). Average 54 46 45 46 47 56 50 49 50 50 Median 43 42 42 43 46 53 47 49 46 48 Income (Different Categories 2002)Income: Cruisers consistently $20k to Less than $39k 28 na na na na 13 na na na nareport higher average incomes $40k to Less Than $49k 14 11% 16% 17% 14% 11% 9% 11% 10% 10% $50k to Less Than $59k 14 16 15 13 14 11 11 11 9 9than non-cruisers, but neither $60k to Less Than $74k 19 22 18 19 21 19 18 17 15 15changes notably since 2006. $75k to Less Than $99k 10 24 22 21 22 15 23 22 20 19 $100k to Less Than $199k 8 24 24 25 24 21 32 31 39 39 $200k to Less Than $300k 1 2 3 3 3 3 5 4 5 7 $300k+ 1 1 2 1 0 1 2 4 3 1 Total 100% 100% 100% 99% 100% 100% 100% 100% 100% 100% Average (in 1,000s) $63 $86 $90 $92 $91 $84 $99 $104 $109 $109 Median (in 1,000s) $49 $69 $73 $73 $75 $64 $78 $84 $93 $97 Gender Male 49% 50% 49% 50% 48% 50% 50% 49% 50% 52% Marital Status Married 76% 81% 79% 83% 82% 78% 83% 83% 86% 79% Employment Status Full-time 66% 67% 56% 64% 65% 49% 58% 57% 62% 63% Retired 13 9 11 11 14 35 19 16 17 20 Educational Attainment College Grad 49% 56% 50% 59% 67% 60% 65% 57% 69% 76%1Prior to 2004 the survey was conducted (incl. Post-Grad)by telephone with an income minimum Racerequirement of $20,000. White 93% 91% 88% 88% 89% 93% 93% 91% 91% 90% Black 2 5 5 6 3 3 3 4 5 3 Other 5 4 7 5 8 4 4 5 4 7Since 2004, the survey has been Base: Total*administered online to people withhousehold incomes of $40,000+ ©2011 TNS - Confidential 33
  34. 34. Results of Research (continued) Non-Cruiser/Cruiser Age TrendsComparison of Cruisers Over Non-Cruiser Cruiser 2004 2006 2008 2011 2004 2006 2008 2011Time Age 25 – 29 7% 9% 8% 8% 6% 6% 6% 7% 30 – 39 27 25 25 25 20 24 21 20 40 – 49 31 33 28 23 23 26 27 24Age: The average cruiser age 50 – 59 22 20 23 24 25 22 24 21changes little over the four 60 – 74 12 12 14 18 23 18 19 24 75+ 1 1 2 1 3 4 4 4waves, with 2011 placing within Total 100% 100% 100% 100% 100% 100% 100% 100%the range of levels since 2004. Average 46 45 46 47 50 49 50 50 Median 42 42 43 46 47 49 46 48However, non-cruisers show an Total Core (25+; $40K) Total US Population 25+increase in age – very similar to 2004 2006 2008 2011 2004 2006 2008 2011 Agethe whole US population (25+), 25 – 29 6% 7% 7% 8% 10 10 11 10with the median age increasing 30 – 39 23 24 22 24 22 21 21 20 40 – 49 28 30 28 24 24 23 23 21by 3 years for non-cruisers and 4 50 – 59 24 21 24 22 18 19 20 20years among total adults 60 + 17 15 17 23 25 25 26 28 60 – 74 16 16 17 19between 2008 and 2011. 75+ 9 9 9 9 Total 100% 100% 100% 100% 100% 100% 100% 100% Average 48 47 48 48 49 49 49 50 Median 44 43 45 47 44 46 45 49Note: US Source: Statistical Abstracts ©2011 TNS - Confidential 34
  35. 35. Results of Research (continued) Interest in and Likelihood of Taking a Cruise or an Ocean/ Sea Voyage Vacation in the Next Three Years Wave by Wave Comparison BASE: Total RespondentsCruise VacationInterested In (NET) 55% 50% 77% 77%Definitely/Probably (Net) 26% 23% 53% 54% NON-CRUISERS/ CRUISERS VACATIONERS ©2011 TNS - Confidential 35
  36. 36. Cruise Characteristics and Satisfaction©2008 TNS - Confidential
  37. 37. Results of Research (continued)Incidence of Vacations and CruisesMarket IncidenceWithin this market (25+/$40,000 incomes), over half have ever taken a cruise vacation (55%ocean/sea/river; 53% ocean/sea voyage only). Within the past three years, the proportions drops byabout half (27% ocean/sea/river; 25% ocean/sea voyage only). In other words: of all cruisers, half(49% ocean/sea/river; 47% ocean/sea voyage only) took their last cruise within the past three years.The target market ($40,000+ and 25+ years of age) represents 44 percent of the overall US population(132,947,000 25+ and $40,000+/ 304,130,000 population). Overall, almost one in four (24%) of thetotal US population has cruised at some point in their lives and 11 percent within the past three years(up from 20% total and 10% in past three years in the 2008 study).In contrast, most (89%) people have taken a vacation within the past three years. Of those travelerstaking vacations, visits to friends/relatives (67%), and non-resort, non-package land-based trips (38%)exceed cruising (27%, as noted above); camping trips (21%), non-package resorts (20%), and land-based packages (17%) follow.Beginning in 2008, results include river cruising in the cruiser segment. However, since river cruisinghas such a small impact on the results (only 29 river cruisers out of 745 total cruisers had not alsotaken an ocean/sea voyage) results are not shown separately throughout the remainder of the report.©2011 TNS - Confidential 37
  38. 38. Results of Research (continued)Comparisons of Trips in Past Three Years Cruisers Vs. Non-cruiser Vacationers: Wave By Wave: With the exception of visiting friend and relatives Switching the viewpoint from cruisers vs. non- (72% vs. 75%) and a near tie on non-package trips cruisers to trends over time (total), 2011 vs. (42% vs. 40%), cruisers are more likely to take 2008 show these shifts: every form of travel:  Cruising grows (27% vs. 23%)  Resort (own arrangements) (25% vs. 17%)  All other vacation types drop at least  Land-based package trip (21% vs. 14%) slightly, but especially visits to friends  Vacation as an extension of a business trip and relatives (67% from 78%); non- (15% vs. 10%) package trips (52%; 38%), resorts by own arrangements (20%; 27%), land-  Vacation house rental (25% vs. 19%) based packages (17%; 26%), and  Resort vacation (package) (11% vs. 6%) vacations on business trips (12%;  Land-based escorted tour (11% vs. 3%) 22%).  All-inclusive resort (10% vs. 6%)  And, of course, cruising in the past three years (48% vs. 0%).©2011 TNS - Confidential 38
  39. 39. Results of Research (continued) Types of Vacations taken in Past 3 Years (QH) BASE: Total Visit Non- Resort (Own Land- CRUISE/ Vacation Resort Land-Based “All-Friends/ Package Arrange- Based VOYAGE/ Vacation House Vacation: Escorted Inclusive”Relatives Trip ments) Package RIVER on Bs. Trip Rental Package Tour ResortQH. Abridged: Have you taken this vacation in the past three years?©2011 TNS - Confidential 39
  40. 40. Results of Research (continued) Satisfaction Levels with Various Vacation Alternatives Compared to other vacations, three categories virtually tie for the lead in generating the highest satisfaction (extremely satisfied) levels: cruising (45%), visiting friends/relatives (46%), and resort trips arranged by the traveler (45%) River cruising, not included on the chart below, delivers similar levels of extremely satisfied customers as ocean cruising (44% US Rivers; 47% European Rivers) All-inclusive resorts (43%), land-based escorted tours (42%), and non-package trips (40%) follow closely Vacations tacked onto business trips yield the least satisfaction (30%). Level of Satisfaction with Types of Vacations (QI) % Extremely Satisfied (5-Point Scale; 5 = Extremely Satisfied) Resort Land- “All- Visit (Own Vacation Based Non- Resort Land- Vacation Inclusive” CRUISE/ Friends/ Arrange- House Escorted Package Vacation: Camping Based on Resort VOYAGE Relatives ments) Rental Tour Trip Package Trip Package Bs. Trip Total 2011 Non-Cruiser Vacationers Cruisers 47% 45% 45% 46% 46% 45% 45% 45% 45%43% 42% 43% 41% 40% 42% 43% 37% 35% 38% 38% 38% 35% 35% 36% 31% 32% 29% 31% 30% 31% 30% 26% 0% QI. Overall, how satisfied were you with your vacations in the past three years? (extremely, very, somewhat, not very, not at all satisfied)? ©2011 TNS - Confidential 40
  41. 41. Results of Research (continued) Amount Spent While on their Last Trip or Cruise For an average one-week vacation, cruisers spend an average of $1,700 (whether a cruise or not), similar to 2008 ($1,770, not shown). Overall vacation spending (all vacations; cruisers and vacationers) consistently rises each wave (2011 at $1,500; 2008 at $1,470; 2006 at $1,410, 2004 $1,303). Other results follow expected patterns: cruisers spend considerably more than non-cruiser vacationer on trips ($1,700 vs. $1,300). By cruise type, passengers on Destination ($2,900) and Luxury Lines ($2,500) spend the most. Passengers on all cruise types spend more than vacationers. Average Amount Spent Per Person, Per Week – Total Vacation (Q1A) BASE: Cruisers/Vacationers CRUISERS Rep Rep Rep Rep Non- Sample Sample Sample Sample Cruisers/ Desti- Contem- (2004) (2006) (2008) (2011) Vacationers Cruisers nation Luxury Premium porary$5,000+$2,000 –$4,999$1,500 –$1,999$1,000 –$1,499$500 - $999Under $500Average per $1,303 $1,410 $1,470 $1,500 $1,300 $1,700 $2,900 $2,500 $1,800 $1,700 segment Q1a. On average, for a one-week vacation, approximately how much do you spend per person? Please take into account your airfare or other transportation costs, hotel, food, and entertainment expenses. ©2011 TNS - Confidential 41
  42. 42. Results of Research (continued) Description of Travel Party While on Vacation (All Vacations, Not Just Cruises) As expected, spouses accompany travelers on most vacations – both cruiser (80%) and non-cruiser vacationers (78%) – varying little over time. However, the inclusion of children varies widely and that variation highlights the ability of, and need for, cruise lines to offer a wide mix of passenger options: Overall, a third (33%) of cruisers/vacationers travel with their children, roughly the equivalent of 2006 Cruisers leave the kids at home more often than non-cruiser vacationers (31% bring their children vs. 38% of non-cruiser vacationers) Segments within cruising reveal vastly different choices: those on Destination (40%) and Contemporary (36%) lines (which includes Disney) take children much more often than Luxury (24%) or Premium (19%) cruisers. The next most likely travel companions are friends (19%) and other (non-children) family members (18%); nearly as many (14%) include adult children followed by those traveling with a partner/ companion (12%). Very few cruisers (2%) or vacationers (3%) travel alone.©2011 TNS - Confidential 42
  43. 43. Results of Research (continued) Description of Vacation Traveler Companions (Q1B) BASE: Cruisers/Vacationers Adult Members of Children Other Family Children 18 Partner/ Extended Organization/Spouse Under 18 Friends Members or Older Companion Family No One Else GroupQ1b. With whom do you usually take vacations?* Note: Friends omitted in 2011; 2008 data shown©2011 TNS - Confidential 43
  44. 44. Research, Decision, Planning, and Booking©2008 TNS - Confidential
  45. 45. Results of Research (continued) Vacation Research Similar to results in previous waves of the Market Profile Study, respondents report that they, themselves, usually make the decisions about how and where to travel, with little difference between cruisers and non- cruiser vacationers. Over half (60%) indicate that they gather the details while a third (35%) claim the spouse either does the research (17%) or helps (18%). Travelers seldom seek advice elsewhere (partner/companion, children, other family, or friends). Vacation Information Researcher (% Gathering Information) (Q1C) BASE: Cruisers/Vacationers CRUISERS Rep Rep Rep Rep Non- Sample Sample Sample Sample Cruisers/ Desti- Contem- (2004) (2006) (2008) (2011) Vacationers Cruisers nation Luxury Premium porarySelfSelf + SpouseSpouseOther Q1c. When you start thinking about a vacation, who most frequently is the one who gathers information and does research on the vacation? ©2011 TNS - Confidential 45
  46. 46. Results of Research (continued) Final Decision Maker Couples typically make the final decision for a vacation or cruise jointly (45%). A smaller, but growing, (39%, up from 27% in 2004) proportion make the decision themselves and fewer still (10%) relegate the decision solely to their spouse. This general pattern loosely applies to the various cruiser segments, except that Destination cruisers tend to make the decision themselves (56%). Gender has little effect. Description of Final Decision Maker on Where/What Vacation (Q1D) BASE: Cruisers/Vacationers CRUISERS Non- Rep Rep Rep Rep Cruisers/ Sample Sample Sample Sample Vaca- Desti- Contem- (2004) (2006) (2008) (2011) Male Female tioners Cruisers nation Luxury Premium porarySelfSelf + SpouseSpouseOther Q1d2. Who most frequently makes the final decision on where you go and what you do on vacations? ©2011 TNS - Confidential 46
  47. 47. Results of Research (continued) Influence vs. Decision Travelers usually make the final decision for a vacation jointly: Nearly half (45%) make the final vacation decisions jointly, most of the others (35%) discuss it A third (39%) make the decision, but even more (44%) feel that they influence it Three times as many of those whose spouse makes the decision (10%) believe that they influence it (33%). Decision Maker – Final vs. Influencer (Q1D) BASE: Cruisers/VacationersQ1d1/d2. Abridged: Who most frequently influences and who most frequently makes the final decision on where you go and what you do on vacations?©2011 TNS - Confidential 47
  48. 48. Results of Research (continued) Length of Time of Planning/Booking a Non-Cruise Vacation Before it is Taken Retreating slightly from 2008 (4.6 from 5.2 months), travelers spend almost 5 months planning their trips, varying by group: • Cruisers spend almost an extra month planning their trips (4.9 months) than non-cruisers (4.1) – almost half (48%) of them decide at least four months in advance of the actual vacation vs. 37% of land-based vacationers • Luxury (5.4 months) and Premium cruisers (5.6) have somewhat longer lead-times; Destination (4.4, the shortest) • Booking/reservations tend to take place about 2 months after planning begins (2.9 months before the trip; 3.3 for cruisers). Length of Time Vacation Planned in Advance of Actual Vacation (Q1E) BASE: Cruises/Vacationers CRUISERS Rep Rep Rep Rep Non- Sample Sample Sample Sample Cruisers/ Desti- Contem- (2004) (2006) (2008) (2011) Vacationers Cruisers nation Luxury Premium poraryUnder 4 Months(NET) 67% 66% 60% 56% 63% 52% 68% 45% 43% 52% 1 Month or Less 1 -2 Monhs 2 -3 Months 3 -4 Months4 Months Ahead 32% 34% 40% 44% 37% 48% 32% 55% 57% 48%(NET) 4 - 6 Months 6+ Months 1+ Year(s)Mean # Months to Plan 3.8 4.3 5.2 4.6 4.1 4.9 4.4 5.4 5.6 4.9Mean # Months to Book na na 3.4 2.9 2.4 3.3 2.9 3.9 4.0 3.2 ©2011 TNS - Confidential Q1e. Abridged: How long before you take a non-cruise vacation do you typically plan and book/make reservations? 48
  49. 49. Results of Research (continued)Decision InfluencesTravelers note four primary influences on vacation choices and three of the four are out of direct control ofmarketers: The destination websites (39%, same as in 2008) element remains the leading source of influence and is the only one of the top four that travel suppliers car directly affect Spouse/travel companion (36%) also mirrors last wave Word of mouth (35%) stabilizes after prior year declines (35% in 2008, 41% in 2006; 45% in 2004) Always wanted to go there (31%) continues to erode from its 2006 peak (34% in 2008; 40% in 2006).The same four sources lead in influence among both cruisers and vacationers, with these observations: Cruisers add cruise websites near the top of their list of leading influences Word-of-mouth is more important for vacationers (41%) than cruisers (32%) Non-cruiser vacationers more often heed the advice of spouses/companions (39%) than cruisers (34%) Always wanted to go there also plays a larger role for vacationers (35%) than cruisers (29%)Few distinctions appear by type of cruise (Destination, Luxury, Premium, Contemporary), except thatDestination and Luxury cruisers tend to seek advice from more sources than those on other cruise lines,particularly cruise websites, travel magazines and magazine ads, travel guides (4%), and direct mail.©2011 TNS - Confidential 49
  50. 50. Results of Research (continued) Information Sources that Influenced Last Vacation Choice (Q1F) BASE: Cruises/Vacationers Spouse/ Travel Television Desti- Travel Always Travel Internet Agent Magazine / Radio Web - Onlinenation Com- Word of Wanted Cruise Info Adver- Travel Travel Recomm Advertise Com- News- Direct Travel chat - SocialWebsite panion Mouth To Go Website Websites tisement Magazine Guide endation ment mercial paper Mail Blog room Networks Other Q1f. What information sources most influenced your choice for your last vacation? ©2011 TNS - Confidential 50
  51. 51. Results of Research (continued)Degree to Which Attributes Influenced Last VacationConsistent with 2008 and reinforcing the strength of destination as a reason for vacation choice, travelersassign it an average 7.9 importance rating on a 10-point importance scale. They also highly value: Spouse/travel companion desire, which remains in second place (7.2) Overall value for the vacation dollar (7.0), which pushes price (6.8) to fourth place Best opportunity to relax and unwind (6.3) mirrors 2008’s results.Most elements nearly match inimportance between cruisers andnon-cruisers, except that cruisersplace a much higher degree ofvalue on the overall value(7.2 vs. 6.7), the particularhotel/resort property or cruiseship (5.8 vs. 4.7), uniqueexperience (6.0 vs. 5.4), andactivities available (6.1 vs. 5.6).©2011 TNS - Confidential 51
  52. 52. Results of Research (continued) Degree to Which Attributes Influenced Last Vacation (Q1G) Base: Cruisers and Vacationers Fit My Spouse/ Best Sight- Vacation Particular Good The Travel Opportunity Offered A seeing The – Schedule/ Hotel/ Resort Programs OverallDesti- Companion To Relax And Unique Oppor- Activities Conve- Days Property Or For Children Value Fornation Desire The Price Unwind Experience tunities Available nience Available Cruise Ship And Family Vacation $ Q1g. Please indicate the degree to which the following attributes influenced your last vacation purchase (10 = most influence and 1 = did not influence at all). ©2011 TNS - Confidential 52
  53. 53. Results of Research (continued) Agreement with Statements about Vacations and Cruising Most cruisers enjoy cruising, but tend to combine it with other forms of vacations. In contrast, one cruiser in eight (13%) avidly cruises to the exclusion of other forms of travel – especially Destination cruisers and the attitude ranks highly among Luxury and Premium cruisers as well. Agreement with Statements About Vacations and Cruising (Q1H) BASE: Cruisers Rep Sample Rep Sample Rep Sample CRUISERS (2006) (2008) (2011) Destination Luxury Premium Contemporary Enjoy cruising, but do it infrequently / instead choose other types of vacations Enjoy cruising often, but prefer to mix cruising with other types of vacations Enjoy cruising, but consider it a vacation I would only take once or twice in my life Prefer cruising to other types of vacations and cruise as often as possibleI don’t enjoy cruising and preferother types of vacations instead Q1h. Thinking about vacations and cruising, which of the following statements best apply to you? ©2011 TNS - Confidential 53
  54. 54. Travel Agents©2011 TNS - Confidential
  55. 55. Results of Research (continued)Travel Agent UsageAmong all of those in the cruise target market (25+ years of age and incomes $40,000+), over half (54%)have used a travel agent for any purpose. This trends downward (59% in 2006; 56% in 2008), but someof the apparent decline may result from confusion by some consumers who book on a travel agentwebsite without knowing the actual booking source: Cruisers still represent prime customers for travel agents; most (68%) use travel agents for at least some travel arrangements, but especially for a cruise (68%) Cruisers, more frequently than non-cruisers, use agents for some of the other services as well: for hotels (43%; 34%) and for rental cars (25%; 21%), but not for air (36%; 35%) By cruise type, Luxury cruisers opt for travel agent assistance more often than others; Contemporary cruisers least often. ©2011 TNS - Confidential Summary of Q2 series. 55
  56. 56. Results of Research (continued) Incidence of Travel Agent Usage BASE: Total Respondents Travel Agent Use Travel Agent Use Travel Agent Use Travel Agent Use Travel Agent User for CRUISE for AIR for HOTEL for CARSummary of Q2 series.©2011 TNS - Confidential 56
  57. 57. Results of Research (continued)Generational Differences in Travel Agent Usage for CruisingTravel agent usage varies by age: Seniors (those 66+ years of age) most often use travel agents to book cruises (79%) Boomers, those 47-65, place in the middle (68%) Gen Xers, those 31-46, book less often (57%) Gen Yers, those 25-30 (the minimum age for the study is 25), book least often (52%), but still represents over half of them. Incidence of Travel Agent Usage by Generation BASE: Cruisers Total Gen-Y Gen-X Boomer Senior Cruisers Cruisers Cruisers Cruisers CruisersQ2a1. When you plan and book cruise vacations, do you use travel agents (net of always/most/some of the time)?©2011 TNS - Confidential 57
  58. 58. Results of Research (continued) Travel Agent Usage for Cruises About two-thirds (68%) of cruisers book at least some of their cruises with travel agents. While this percentage continues to decline (from 74% in 2008, 78% in 2006, and 80% in 2004), it remains fairly strong. Some of this apparent decline, however, may result from confusion by some consumers who book their cruises on a travel agent website since they may be unaware of the source responsible for the booking. By type, Destination and Luxury cruisers most often book through agents; Contemporary cruisers the least. Travel Agent Usage to Book Cruise Vacations (Q2A1B) BASE: Cruisers CRUISERS Rep Rep Rep Rep Sample Sample Sample Sample Contem- (2004) (2006) (2008) (2011) Destination Luxury Premium poraryUse AgentsDo Not Use Q2a1. When you plan and book cruise vacations, do you use travel agents always, most of the time, some of the time, or never? ©2011 TNS - Confidential 58
  59. 59. Results of Research (continued) Travel Agent Usage for Non-Cruise Vacations As noted earlier, even when not cruising, cruisers use travel agents at higher rates than non-cruisers, but the gap narrows from last year (47% vs. 43% in 2011 compared to 60% vs. 44% in 2008). Destination (84%) and Luxury (69%) cruisers , especially, rely on travel agents. Use of Travel Agents for Non-Cruise Vacations CRUISERS Rep Rep Sample Sample Non- Contem- (2008) (2011) Cruisers Cruisers Destination Luxury Premium poraryUse AgentsDo Not Use Q2a1. When you plan and book cruise vacations, do you use travel agents always, most of the time, some of the time, or never? ©2011 TNS - Confidential 59
  60. 60. Results of Research (continued) Frequency of Travel Agent Usage on Non-Cruise Vacations The following two charts show that not only a higher percentage of cruisers use travel agents than vacationers, but cruisers use agents more frequently. This pattern, especially notable for cruise planning and booking, occurs in every other facet (air – not so much in planning as in booking, hotel, car rental) of travel as well. Frequency of Travel Agent Usage for Planning Travel Cruisers vs. Vacationers Non- Non- Cruisers Cruisers Cruisers Cruisers Cruisers Non- Cruisers Cruises Air Air Hotel/Resort Hotel/Resort Cruisers Car Car (NET)* 59% 35% 36% 34% 43% 21% 25%AlwaysMost of the TimeSome of the TimeNever Q2a1. When you plan and book cruise vacations, do you use travel agents always, most of the time, some of the time, or never? Q2a2. Please indicate how often, if ever, you consult travel agents for planning components of vacations. *Net: Net of Always, Most of the Time, and Some of the Time ©2011 TNS - Confidential 60
  61. 61. Results of Research (continued) Frequency of Travel Agent Usage for Booking Travel Cruisers vs. Vacationers Non- Non- Cruisers Cruisers Cruisers Cruisers Cruisers Non- Cruisers Cruises Air Air Hotel/Resort Hotel/Resort Cruisers Car Car (NET)* 64% 29% 36% 31% 43% 19% 25%AlwaysMost of the TimeSome of the TimeNever Q2a1. When you plan and book cruise vacations, do you use travel agents always, most of the time, some of the time, or never? Q2a3. Please indicate how often, if ever, you consult travel agents for booking components of vacations. *Net: Net of Always, Most of the Time, and Some of the Time ©2011 TNS - Confidential 61
  62. 62. Results of Research (continued) Satisfaction with Travel Agents Travel agency satisfaction mirrors the 2008 level, similar to 2004 results. By segment: Cruiser and non-cruiser vacation express similar satisfaction with travel agents Destination (81% extremely/very satisfied) and Luxury (70%) cruisers post the highest satisfaction levels From the opposite perspective, few agency users are dissatisfied with their agencies. Only about one user in 17 (6%) indicates any dissatisfaction with the primary agency used. Level of Satisfaction with Travel Agent Used (Q2C) BASE: Cruisers/Vacationers Who Have Contacted a Travel Agent CRUISERS Rep Rep Rep Rep Non- Sample Sample Sample Sample Cruisers/ Desti- Contem-TOP 2 BOX (2004) (2006) (2008) (2011) Vacationers Cruisers nation Luxury Premium porary(Extremely/ 60% 56% 59% 59% 57% 59% 81% 70% 59% 58%Very Satisfied)ExtremelyVerySomewhat SatisfiedDissatisfied (NET) Mean 3.7 3.6 3.7 3.7 3.7 3.7 4.1 3.9 3.7 3.7 Q2c. Overall, how satisfied are you with the travel agent(s) you use? ©2011 TNS - Confidential 62
  63. 63. Results of Research (continued) Importance of Professional Designations A third (35%) of all travelers consider professional designation/accreditation as a cruise expert to be extremely/very important – but, as expected, is more important to cruisers (37%) than non-cruiser/vacationers (31%) – particularly Destination (76%) cruisers. Importance of Professional Designations in Choice of Travel Agent (Q2D) BASE: Total Respondents CRUISERS Rep Rep Sample Sample Non- Desti- Contem-TOP 2 BOX (2008) (2011) Cruisers Cruisers nation Luxury Premium porary(Extremely/ 36% 35% 31% 37% 76% 41% 43% 36%Very Important) Extremely Important Very Important Somewhat Important Not Very Important Not At All Important Mean 2.7 2.9 2.8 3.0 3.9 3.3 3.2 2.9Q2d: Abridged: How important are professional designations (cruise travel expertise) in your choice of a travel agent? ©2011 TNS - Confidential 63
  64. 64. Results of Research (continued) Change in Travel Agent Usage Because of Professional Cruise Accreditation A professional accreditation positively influences travelers (62% = much/somewhat more likely to use). Plus, it makes one in six (17%) much more likely to use an agent, although that slips a bit from 2008. Cruisers (20%), especially destination cruisers (55%), rely more heavily on accreditation than non-cruisers (13%). Shift in Travel Agent Usage Due to Professional Cruise Accreditation (Q2D) BASE: Total Respondents CRUISERS Rep Rep Sample Sample Non- Desti- Contem- (2008) (2011) Cruisers Cruisers nation Luxury Premium porary(NET) Much/ Somewhat 61% 62% 57% 66% 83% 76% 71% 66%Much More LikelySomewhatMore LikelyNot At AllMore Likely Q2d1: How much more likely would you be to use a travel agent if you knew that he or she were a cruise accredited travel agent? ©2011 TNS - Confidential 64
  65. 65. Cruise Interest and Potential Plans©2011 TNS - Confidential
  66. 66. Results of Research (continued)Interest in Cruising and Resorts in the Next Three YearsGood news for the cruise industry – travelers maintain their high level of interest in cruising expressed inrecent waves: Interest in cruising remains very high (65%, from 64% in 2006, 60% in 2004) and those who believe that they will definitely/probably cruise in the next three years climbs slightly (40% vs. 37% in 2008) Potential cruisers ($40K; 25+) have interest (66%) and anticipate taking trips (41% definitely/probably) that involve non-package resort vacations at about the same level as interest/anticipation of cruising Resort vacations lags both cruises or non-package vacations.Past cruisers express very high interest (77%, the same level as in 2008) in a future sailing: Most (54%) plan (definitely/ probably) to cruise in the next three years While past cruisers are interested in other types of vacations, none match cruising except land-based non-resort vacations (80%).Half (50%)* of Non-Cruiser/Vacationers show interest in taking a cruise in the next three years, a slightlylower, but still very strong, level than last wave (55%)*. While they place cruising below several othervacation alternatives, this group can still fuel future cruise industry growth. As more people becomecruisers they will contribute to future growth of the cruise industry since many cruisers come back againand again.River cruising appeals to cruisers (43% interest; 15% planning) much more than non-cruisers/vacationers(30% interest; 8% planning) and more among Destination cruisers (78% interest; 50% planning ) thanother cruise types.*NOTE: These percentages are any level of interest, not just definitely/probably©2011 TNS - Confidential 66
  67. 67. Results of Research (continued) Interest in and Likelihood of Taking a Cruise or an Ocean/Sea Voyage Vacation in the Next Three Years (Q3A, Q3B) BASE: Total Respondents Non- Non- CRUISERS Definitely Rep Rep Rep Rep Cruisers/ Cruisers/ Probably Sample Sample Sample Sample Vaca- Non-Vaca- Desti- Contem- (2004) (2006) (2008) (2011) tioners tioners Cruisers nation Luxury Premium poraryInterested In (NET) 60% 64% 64% 65% 50% 53% 77% 96% 90% 91% 78%Definitely/Probably (Net) 38% 38% 37% 40% 23% 17% 54% 73% 75% 71% 55% Cruise VacationInterested In (NET) 49% 61% 63% 62% 57% 58% 65% 65% 62% 59% 69%Definitely/Probably (Net) 29% 31% 33% 29% 27% 21% 32% 43% 35% 29% 35% Resort Vacation (Package)Interested In (NET) 53% 70% 71% 66% 67% 42% 68% 71% 64% 61% 71%Definitely/Probably (Net) 41% 47% 47% 41% 42% 14% 44% 57% 45% 38% 45% Resort Vacation (Non-Package) Q3a. People have different vacation interests. What kinds of vacations would you be interested in taking in the next three years? 3b. How likely do you think you will be to actually take one of these vacations? (Definitely, probably, might or might not, probably not, or definitely not take one) ©2011 TNS - Confidential 67

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